Latest news with #familyFarms
BBC News
6 days ago
- Business
- BBC News
Inheritance tax: Family farms in 'turmoil' over changes says NFU
Inheritance tax changes announced by the chancellor last October have thrown Welsh family farms into "turmoil", a farming union has plans to tax inherited agricultural assets worth more than £1m at a rate of 20% were announced in Rachel Reeves' first Labour Cymru President Aled Jones told MPs, on Wednesday, there was a need for "compassion" as "vulnerable people" were in the "eye of the storm". He suggested there was another way the Treasury could raise the £2bn a year UK government has defended its inheritance tax reforms, describing them as "vital". There were protests across the UK after the Budget announcement, in October, that inherited agricultural properties worth more than £1m would be subject to inheritance tax at 20% - half the usual rate - from April UK government has said the changes will only affect the wealthiest 500 farms each year, but farming groups argue as many as 70,000 could be affected. Mr Jones told the Welsh Affairs Committee farming families were "going through some very difficult conversations, particularly when there are older members at a stage of life who find it very difficult to deal with these issues". "The announcement last October has thrown lots of these family businesses into turmoil," he said."I ask for compassion for these people - they need to be taken from the eye of the storm." Mr Jones said farming union leaders had suggested to the Treasury an alternative approach, the introduction of a "clawback mechanism" on money raised from selling land when it is not to be used for food production."That money should, in my opinion, be taxed."If you like, tax it at 40%, rather than 20%. These are the mechanisms that are operational in other countries."A farmer transferring from one generation to the other, there's not a single penny that arrives in their pockets."It's something really to continue that farm business for generations to come." The UK government maintains that under its changes three quarters of estates would continue to pay no inheritance tax at all, while the remaining quarter would pay half the inheritance tax that most people say that that payments could be spread over 10 years, interest-free.
Yahoo
09-05-2025
- Business
- Yahoo
Vital Farms Inc (VITL) Q1 2025 Earnings Call Highlights: Record Sales Amid Supply Challenges
Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Vital Farms Inc (NASDAQ:VITL) achieved record levels for first-quarter volume and net sales, with net revenue reaching $162 million, marking a 10% increase from the previous year. The company experienced robust growth in its butter business, with first-quarter net revenue up 41% year over year. Vital Farms Inc (NASDAQ:VITL) added approximately 25 new family farms to its network in the first quarter of 2025, increasing its network to over 450 farms. The company is on track to meet its long-term goal of $1 billion in net revenue by 2027, supported by strong brand awareness and consumer loyalty. Vital Farms Inc (NASDAQ:VITL) maintains a strong balance sheet with $161.3 million in cash equivalents and no debt, providing financial stability and flexibility for future investments. Volume-related growth was below trend due to egg supply constraints and depleted inventory levels, impacting year-over-year growth rates. Net income for the first quarter of 2025 decreased by 11.2% compared to the previous year, driven by increased investments in future growth. The company faces potential cost impacts from recently announced tariffs, which could affect its business operations and cost structure. Gross profit margin decreased year over year due to increased investments in crew members and less efficient operations caused by limited egg supply. Vital Farms Inc (NASDAQ:VITL) is experiencing higher shipping and distribution expenses, driven by increased sales volumes and higher line haul rates. Warning! GuruFocus has detected 4 Warning Signs with GEG. Q: Can you elaborate on the recent price increase and its impact on your relationship with retailers? A: Russell Diaz Conseco, CEO: We focus on pricing to protect our gross margins and ensure sustainable growth. Retailers have their own pricing processes, and while we don't influence them, we expect them to price competitively. Our price increase is modest and aimed at maintaining strong financial performance. Q: How is the egg supply situation affecting your operations, and what are your expectations for the rest of the year? A: Russell Diaz Conseco, CEO: The egg supply is still constrained, but we are seeing increased orders from retailers. We expect supply to improve as new farms come online, and we anticipate a more normalized market in the latter half of the year. Q: Can you provide more details on the volume growth expectations for the year? A: Tilo Breda, CFO: We expect volume growth to accelerate as new farms come online. The first quarter was impacted by low inventory, but as supply improves, we anticipate stronger growth in the latter half of the year. Q: How are tariffs impacting your cost structure, and what measures are you taking to mitigate these effects? A: Tilo Breda, CFO: Tariffs affect our imported butter and packaging materials. We have a good handle on the impact and believe our price increase will cover these costs. Our exposure to tariffs is limited compared to others in the industry. Q: What is the status of your farm expansion and supply chain investments? A: Russell Diaz Conseco, CEO: We added 25 new farms in Q1, bringing our total to over 450. Our supply chain investments, including a new facility in Indiana and an egg grading system in Missouri, are on track to support future growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
